REE Automotive (REE Automotive) Gross Margin % : -100.66% (As of Dec. 2023)

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What is REE Automotive Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. REE Automotive's Gross Profit for the three months ended in Dec. 2023 was $-0.46 Mil. REE Automotive's Revenue for the three months ended in Dec. 2023 was $0.46 Mil. Therefore, REE Automotive's Gross Margin % for the quarter that ended in Dec. 2023 was -100.66%.

The historical rank and industry rank for REE Automotive's Gross Margin % or its related term are showing as below:

REE' s Gross Margin % Range Over the Past 10 Years
Min: -16483.33 Med: -85.06 Max: 28.05
Current: -249.93

During the past 5 years, the highest Gross Margin % of REE Automotive was 28.05%. The lowest was -16483.33%. And the median was -85.06%.

REE's Gross Margin % is ranked worse than
99.29% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs REE: -249.93

REE Automotive had a gross margin of -100.66% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for REE Automotive was 0.00% per year.

REE Automotive Gross Margin % Historical Data

The historical data trend for REE Automotive's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

REE Automotive Gross Margin % Chart

REE Automotive Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

28.05

-66.75

-16,483.33

-103.36

REE Automotive Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial										-	-	-	-573.33	-100.66

Competitive Comparison of REE Automotive's Gross Margin %

For the Recreational Vehicles subindustry, REE Automotive's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

REE Automotive's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, REE Automotive's Gross Margin % distribution charts can be found below:

* The bar in red indicates where REE Automotive's Gross Margin % falls into.

REE Automotive Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

REE Automotive's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	-1.7	/	1.608
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.608 - 3.27)	/	1.608
	=	-103.36 %

REE Automotive's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	-0.5	/	0.455
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.455 - 0.913)	/	0.455
	=	-100.66 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

REE Automotive (NAS:REE) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

REE Automotive had a gross margin of -100.66% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

REE Automotive Gross Margin % Related Terms

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REE Automotive (REE Automotive) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » REE Automotive Ltd (NAS:REE) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Kibbutz Glil-Yam, Herzliya, ISR, 4690500

Website

https://www.ree.auto

REE Automotive Ltd is a technology company whose mission is to be the cornerstone for zero-emission electric and autonomous vehicles. Company aims to empower the companies, such as original equipment manufacturers, or OEMs, delivery and logistics fleets, dealers, e-commerce retailers, new mobility players, Mobility-as-a-Service providers and autonomous drive companies, in the build-out of any size or shape of electric or autonomous vehicle - from Class 1 through Class 6, focusing primarily on Class 3 through 5 platform models on the P7 EV platform. Geographical preference in Israel, Germany, Norway, U.S, and Rest of the world.

Executives

David Weisburd	other: Member of Sponsor	1 WORLD TRADE CENTER, FLOOR 85, NEW YORK NY 10007
Hans Thomas	director	1 WORLD TRADE CENTER, FLOOR 85, NEW YORK NY 10007